611.2231/444: Telegram
The Minister in Ecuador ( Long ) to the Secretary of State
[Received June 1—12:52 a.m.]
83. Referring to the Department’s telegram No. 39, May 17, 8 [4] p.m. and my despatch No. 1031, May 24,46 the Ecuadoran Government in an effort to bring about a balance in its foreign trade proposes to restrict imports temporarily through customs surcharges on nonscheduled products and impose quota restrictions on those articles of the following tariff items listed in Schedule I: ex 13A hog lard; 30 canned sardines; 87 wheat flour; ex 277 prepared paint; 644 cash registers etc.; 650 sewing machines in this item only, 687 ABC passenger cars, 900 oil cloth, 1086B silk and rayon hosiery.
The basis for quotas proposed is as follows:
“50% of the average imports of a given article during the past 4 years will be taken as the basis of 1 year’s quota. As the decree will provide for application of quotas for 6 months period the quota for this period will be 25% of said average.”
In view of the critical situation could the original note from Ministry of Foreign Affairs dated May 947 be substituted for a new one of the same date incorporating these concrete proposals and thus permit the application of customs surcharges and quotas commencing on June 10.
The Legation’s despatch No. 1046, May 30,47 leaving air mail June 1, outlines the Ecuadoran proposal and contains statistics of imports under Schedule I during the past 4 years.